TaxTMI 
TaxTMI 
2023 (1) TMI 851
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....The first being against the disallowance of adhoc payment of Rs. 8000/- to each of the labourers working under the assessee which was claimed as bonus but not actually the statutory bonus under the provisions of section 43B of the Act, the second is in respect of non-allowance of higher rate of depreciation in respect of heavy earth moving machinery used by the assessee in its business on construction of roads, the third issue being the disallowance at 100% as against 30% of the amount disallowed by applying the provisions of section 40(a)(ia) of the Act and the fourth being the issue against the non-granting of benefit of credit of TDS. 4. At the time of hearing, ld. AR submitted that he did not wish to press Ground No. 6 of the appeal, w....
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.... the submission that the disallowance as made by the AO and confirmed by the ld. CIT(A) is liable to be deleted. 7. In reply, ld. Sr DR submitted that there is no evidence of the assessee having paid the amount to the labourers though the assessee claims that the amount has been paid in subsequent year. It was the submission that the issue must be restored to the file of the AO to examine whether the amount of Rs. 8000/- to each labourer has been paid or not. He vehemently supported the order of the AO and ld. CIT(A). 8. We have considered the rival submissions. A perusal of the profit and loss account of the assessee and Note-17 thereto showing employee benefit expenses shows that there is labour payment to the extent of Rs. 2.29 crores,....
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.... in respect of WDV of the said heavy earth moving machinery. 10. In reply, ld. Sr DR submitted that the contract entered into by the assessee is a consolidated contract. The heavy earth moving machineries are used by the assessee for the timely completion of the contract and for meeting the criterion in respect of the quality in the contract. The heavy earth moving machineries are not hired out to the contractee and the assessee has also not shown hire charges in its profit and loss account. It was the submission that the higher rate of depreciation cannot be granted to the assessee. 11. We have considered the rival submissions. A perusal of the profit and loss account clearly shows that as specifically mentioned by ld. DR that the assess....